Background information

Saint Savers Mart $($SSM$)$ is a chain of grocery stores based in South Australia. SSM was first established by Gregory Williams in Goodwood, South Australia, in the $1960$s to sell a broad range of reasonably priced goods to the local community.

SSM$\text{'}$s motto is:

$$Where every purchase feels like a $$heavenly$$ deal$.$

SSM found success by offering a low$-$cost alternative to large grocery chains while still maintaining a broad range of products. The company was so successful that Gregory commenced expanding his network of stores to other suburbs around Adelaide and into some of the larger regional cities, such as Mount Gambier and Murray Bridge. As of today, SSM has $10$ stores across South Australia and has plans to grow further.

Gregory has recently retired and has handed management and ownership of the company to his daughter, Jordan Williams. Jordan has an extensive legal background, and she has been focused on automating business processes by using technology to ensure that SSM achieves cost savings.

Ownership structure

SSM is operated as a family business and is wholly owned by Jordan. As the company$$s rapid growth is putting a major strain on Jordan, she has agreed with management that the company needs to be sold to a larger operator within the next $10$ years.

In preparation for future growth and a potential sale, Jordan has established a board consisting of herself $($as the Managing Director$),$ an independent chairperson and two independent directors. The board also acts as a risk committee to manage the risk management process for SSM$.$ The board members have a broad range of experience $$ including in the fields of finance, information technology and logistics $$ which is relevant and helpful to managing SSM$$s operations.

Risk management

After the Board was established, its first projects were the development of a risk appetite statement and the completion of a risk assessment. To prepare the risk appetite statement, SSM engaged its usual accounting firm, Parto Chartered Accountants. Parto Chartered Accountants has drafted the statement, and it has left SSM responsible for populating the risk appetite fields for each risk category.

SSM outsources most of its financial compliance work; however, it understands that the market is sensitive to economic conditions, and therefore must manage its financial risks to protect itself. Whilst SSM understands that it may not completely eliminate financial risks, it seeks to manage risk to a reasonable level.